GM workers can expect bonuses of between $5,500 and $7,000 each, according to a report in The Wall Street Journal. The payments are based on a formula that gives workers a $1 bonus for every $1 million in North American operating profit. Wow! "Channel Stuffing" really does pay off for those UAW workers but not for your local GM dealer.
For those of you that don't know, or
remember what is "channel stuffing," let me refresh your
memory. Channel Stuffing occurs when a GM car leaves the production line
that car is immediately booked as a sale. However, that car in all
reality has not been sold to anyone. GM simply records the sale when the
car is shipped to the local dealer. Therefore, those bonuses are being
paid not by GM but by all those GM dealers out there.
No comments:
Post a Comment